February 15, 2000

This policy recognizes Risk Management as an essential function
of San José State. University, and implements the provisions
of CSU Executive Order 715, the CSU Risk Management Policy
(10/27/99), in response to the findings of the Office of the CSU
Auditor Report 98-25.

Designee For Campus Risk Management

The Vice President for Administration is the President's
designee to oversee the risk management function at San José
State University.

Office of Safety and Risk Management

The Vice President for Administration has established an Office
of Safety and Risk Management to develop and recommend programs,
policies and procedures for campus-wide administration. The
Director of Safety and Risk Management reports to the Associate
Vice President for Human Resources in the Administrative Division.
The purpose of the risk management program is to ensure careful
decision making that considers both programmatic needs and the
reasonable measures necessary to contain the exposure of the
University to risk. The Office of Safety and Risk Management
provides professional advice, information, and recommendations to
those involved in decision making and program administration on
campus. The Risk Management staff participates in ongoing
professional development to maintain needed expertise.

Program Elements

Risk management is an ongoing process. All managers, including
deans and division heads, have the responsibility to exercise the
principles of risk management in programs under their purview, to
seek the assistance of the Office of Safety and Risk Management
when necessary, and to implement approved recommendations. The
following steps will be taken in the Risk Management process:

Identification of risks:

Define campus-relevant criteria for significant risks

Identify risks unique to San José State
University

Evaluate the seriousness of risks through the following
methods:

Probability analysis of risk occurrence

Quantitative analysis of each risk exposure

Rank risks in priority order of their potential impact

Analyze frequency and severity of loss from potential and
existing risks

Select the best risk management technique to address risks
without unduly curtailing or modifying activities necessary to
the SJSU mission, i.e.:

Risk Management Guidelines

Where necessary, and with thorough consultation, the Director of
Safety and Risk Management will develop and recommend. Risk
Management Guidelines for use by the various departments and
offices of the University. The guidelines will address the
preservation of the human, financial and physical assets of the
University. Guidelines recommended by Systemwide Risk Management,
the Chancellor's Office and the CSU Risk Management Authority shall
be incorporated in SJSU's guidelines.

Self-Insurance/Purchase of Insurance

Insurance purchase and administration of self-insurance programs
are the responsibility of the Office of Safety and Risk
Management.

Accountability/Annual Report

The Director of Safety and Risk Management will provide an
Annual Management Report to the President's staff. The report shall
include, at the minimum, a review of current year's activities,
issues, loss costs, trends, and major initiatives. The Annual
Safety and Risk Management report will be submitted no later than
November 30 each year.

Policy Update

This policy shall be reviewed during each annual report process,
and revised as needed.